Multiple Choice
Which of the following is true about a positive net present value?
A) It measures the increase in the value of a firm resulting from an investment.
B) It measures the rate at which the discount rate has decreased.
C) It indicates that an investment is not profitable and hence should be rejected.
D) It indicates that the cost of capital is less than the hurdle rate.
Correct Answer:
Verified
Correct Answer:
Verified
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